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Question 1

The whaling industry has hunted some species of whales nearly to extinction. Cattle, however, continue to thrive on farm throughout the world. Which of the following is the major reason for this difference between title and wales?

Answer 1

Whales are common resource and cattle are private property

Question 2

Which one of the following is a reason that more that are occurs along highways the new private driveways?

Answer 2

Highways are a common resource

Question 3

To which type of group do flood control dams belong to?

Public, private, club, or common resources

Answer 3

It’s a public good

Question 4

Which one of the following is the best example of a tragedy of the commons?

A) The free rider problem
B) The Canadian day fireworks display
C) environmental degradation
D). Municipal police service

Answer 4

C

Question 5

Which one of the following describes a good that is neither rival in consumption or excludable?

Answer 5

It’s a public good

Question 6

The free rider problem is associated with what and as a consequence of their consumption being what

Answer 6

Public goods, nonexcludable

Question 7

Which of the following statements can be correctly made about public goods?

A) it cost nothing to produce
B) Basic research yields benefits that cannot be measured in dollars
C) Basic research provides long-term but not short-term benefits
D) Basic research produces benefits to society as a whole, including those who do not pay for it

Answer 7

D

Question 8

The mid level estimate of the value of a statistical life in Canada is $5.8 million. What is the benefit derived from the installation of a traffic light if it reduces the risk of a fatality accident by 0.5% point?

Answer 8

$29,000

Question 9

Which one of the following refers to the provision of an education in a public school?
A) it is excludable and rival in consumption
B) it is nonexcludable but rival in consumption
C) it is excludable but non-rival in consumption
D) it is nonexcludable and non-rival in consumption

Answer 9

A

Question 10

Suppose that the law requiring motorcycle riders to wear helmets reduces the probability of a fatality motorcycle accident from 0.5 to 0.3% of the lifetime of the writer. Suppose also that the cost of a lifetime ownership of the helmet is $7000. It is efficient for the government to require writers to wear helmets if the value of human life is

A) $1 million or more
B) $2 million or more
C). $3 million or more
D) 3.5 million or more

Answer 10

D
3.5 million or more

3,500,000 x .2% = 7,000

Question 11

Which one of the following is an example of the tragedy of the commons?
A) A crime is committed in a public place
B) A common resource becomes rival in consumption
C) law-enforcement in public places is enhanced
D) property rights are ignored

Answer 11

B

Question 12

Which one of the following explains why cost-benefit analysis is difficult?

Answer 12

Analysis do not typically observed prices when evaluating the benefits of a public good

Question 13

What type of good is a Wi-Fi at airport terminals

Answer 13

It is non-rival in consumption because additional viewer does not reduce the strength of signal received by other viewers

It is nonexcludable because anyone with an Internet connection can receive the signal without paying

Therefore this is a public good

Question 14

What type of good is congested city streets

Answer 14

This good is rival in consumption because additional users impose cost on other drivers by increasing the congestion

It is nonexcludable because it would be very difficult to charge tolls on city streets with virtually unlimited access

Therefore this is a common resource that tends to be over consumed

Question 15

What type of good is a poem

Answer 15

This good is non-rival in consumption because many people can enjoy the same Poem at the same time

It is nonexcludable because users can read the poem or even memorize it and enjoy it without paying for it

Therefore this is a public good

Question 16

What type of good is general medical research on the relationship between lifestyle and obesity

Answer 16

Consumption is non-rival in consumption because the same research can benefit one person or 1 billion people simultaneously

Is also nonexcludable because once knowledge is gained, it is virtually impossible to keep it away from people who do not pay for it

Therefore this is a public good

Question 17

What type of good is a congested city park

Answer 17

This good is rival in consumption because of the crowding. More users clearly will detract from the benefits received by existing users

This good is excludable because it is very easy to admit one of those who buys an admission n ticket

Therefore this is a private good even though it’s publicly provided

Question 18

What type of good is an uncongested private swimming pool

Answer 18

This good is non-rival in consumption because it is not crowded. As long as it is not crowded, additional swimmers do not impose cost another users.

It is also excludable, not because it is privately owned, but because it is easy to require the purchase of a ticket for admission.

Therefore this would be considered a club good even though it is privately owned

Question 19

Give an example of a private good and explain why it’s private

Answer 19

Example; diet Pepsi

My consumption of it prevents other people from consuming it meaning it is rival.
Those who do not pay for the Pepsi can’t have the pet see this is excludable

Question 20

Give an example of the club good and explain why it’s a club good

Answer 20

I nearly empty theater. (or nearly empty plane)?

Because it’s not full it’s not crowded meaning it’s not rival

However you still have to buy a ticket therefore it is excludable if you don’t buy ticket you can’t be there

Question 21

Give an example of a common resource and explain why it’s a common resource

Answer 21

Wild mushrooms. Or think of wild raspberries

People who pick wild mushrooms 10 to pick all that they can find because they know that if they leave any to regenerate, someone else will come along and pick them anyways. The picker would be more likely to do a controlled harvest if they could keep the mushroom patch to themselves

Question 22

Give an example of the public good and explain why it’s probably good

Answer 22

Medical research

What’s the knowledge has been acquired and people know about it it can be enjoyed by everyone it would be difficult to prevent people from knowing about it

Question 23

Which one of the following are sidewalks an example of?

A) public good
B) private good
C) common resource
D) Club good

Answer 23

A